In both cases, the timing of cash flows is irregular. It is not immediately clear which project has the better IRR. For that, we'll need to use a special function in Excel. Plugging the data into ...

To calculate IRR in Excel, you can use the IRR function, MIRR function, or XIRR function. The IRR function is used when cash flows are expected at regular intervals. The MIRR function is used when ...

1. Excel’s IRR function. Excel’s IRR function calculates the internal rate of return for a series of cash flows, assuming equal-size payment periods. Using the example data shown above, the IRR ...

If no parameters are entered, Excel starts testing IRR values differently for the entered series of cash flows and stops as soon as a rate is selected that brings the NPV to zero. If Excel or ...

To make it easier, consider using Excel's built-in IRR function. There is also an XIRR (extended IRR) function if you expect your cash flow to be more erratic. If you are looking at two potential ...

providing the correct IRR for the projected cash flows. How to Make a Spreadsheet to Track a Loan. You can use an Excel spreadsheet to create a... Kinds of Functions Used in Excel Kinds of ...

Then, apply Excel’s IRR function to that range ... IRR is helpful for gauging the return on cash flows, but it can potentially be used by managers to manipulate investment performance.

Using Excel to calculate IRR with unequal timing of cash flows In the chart below, we have management's estimation for the initial cost and cash flow returns for both the expansion and new ...

Here’s how you’d calculate the IRR for the investment: In an Excel spreadsheet, enter your initial investment in a cell as a negative number (-10,000). Then, enter an annual cash flow in the ...